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2013 (10) TMI 689 - AT - Service TaxDemand - Manpower recruitment and supply services - Held that - applicants have collected the entire amount of tax from the service recipients but had not deposited to government exchequer - Therefore, applicants to deposit entire amount of tax in all the three cases within 8 weeks. Upon such deposit, pre-deposit of interest and penalties is waived and its recovery is stayed during pendency of the appeals.
Issues involved:
Common issue of demand of tax under manpower recruitment and supply services. Analysis: The judgment by Appellate Tribunal CESTAT CHENNAI involved multiple applications with a common issue related to the demand of tax under the category of manpower recruitment and supply services. The tribunal noted that the demand of tax was significant in the cases of various appellants, and after hearing both sides, it was established that the tax amount had been collected from the service recipients but not deposited to the government exchequer. The original authority had confirmed the demands, and the Commissioner (Appeals) had upheld the adjudication order. The tribunal considered the arguments presented by both sides. The department submitted that the appellants should be directed to deposit the entire tax amount along with interest. On the other hand, the appellants' counsel highlighted that they were facing a severe financial crisis. In light of this, the tribunal directed the appellants to deposit the entire tax amount in all three cases within 8 weeks. It was further ordered that upon such deposit, the pre-deposit of interest and penalties would be waived, and the recovery of these amounts would be stayed during the pendency of the appeals. The appellants were required to report compliance by a specified date. In conclusion, the judgment emphasized the importance of complying with tax obligations and balancing the financial challenges faced by the appellants. The tribunal's decision to allow the waiver of interest and penalties upon the deposit of the tax amount within the stipulated timeframe aimed to provide relief to the appellants while ensuring the fulfillment of their tax liabilities.
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